Analysts Are Updating Their Salzgitter AG (ETR:SZG) Estimates After Its Full-Year Results
Shareholders might have noticed that Salzgitter AG (ETR:SZG) filed its annual result this time last week. The early response was not positive, with shares down 4.6% to €22.84 in the past week. Salzgitter reported in line with analyst predictions, delivering revenues of €11b and statutory earnings per share of €3.70, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Salzgitter
After the latest results, the consensus from Salzgitter's nine analysts is for revenues of €10.2b in 2024, which would reflect a measurable 5.2% decline in revenue compared to the last year of performance. Statutory per share are forecast to be €3.68, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €10.2b and earnings per share (EPS) of €3.96 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
The consensus price target held steady at €27.46, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Salzgitter, with the most bullish analyst valuing it at €45.00 and the most bearish at €21.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.2% by the end of 2024. This indicates a significant reduction from annual growth of 8.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.1% annually for the foreseeable future. It's pretty clear that Salzgitter's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €27.46, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Salzgitter. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Salzgitter analysts - going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Salzgitter , and understanding these should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
